Global equity markets are looking weak again this morning across the globe and as I pen this issue (8:47am EST) in early pre-open trading, the Dow Industrials are down over 280 points.
That is good news for your position in UVXY. Continue to hold with a good-till-cancelled protective sell stop at $22.24. If not on board this position yet, for whatever reason, wait for my next signal on the stock market.
Meanwhile, the euro is also acting weak again today, and the dollar firm. Gold is up a tad, but overall still not mustering up enough strength to elect any buy signals.
Nevertheless, I see the potential for a short-term rally in the mining sector, partly to play catch up with gold’s recent strength, but also because savvy money may soon start moving into the sector, despite the weakness in the overall equity markets.
Market Vectors Gold Miners ETF (GDX) is the most widely held fund in the global gold mining segment. GDX tracks a market-cap-weighted index of gold mining firms that are listed on the NYSE, NYSE Arca or NASDAQ.
This is a low risk entry point as gold stocks are trading just above their lows, which should provide a solid support level. Trade details below.
Hold all other open positions and related stops.
For those who own the EUO ETF, it’s time to add a protective sell stop, if you haven’t already done so.
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For today: 1. For all members: Using 5% of your trading funds, buy Market Vectors Gold Miners ETF (GDX) at the market. I will monitor the stop for you. 2. For all members who own EUO: If you have not already done so, place a good-till-cancelled protective sell stop at $24.33. |
Best wishes, as always and stay tuned!
Larry
